The euro bounced back above $1.13, helped by a weaker US dollar and falling bond yields as investors fear that a new and possibly vaccine-resistant coronavirus variant could hurt the ongoing economic recovery. Still, the bloc's currency remained close to its weakest level since July 2020, amid concerns over potential new COVID restrictions across Europe and as investors see the US Federal Reserve tightening monetary policy faster than other major central banks. The minutes of the ECB and Fed policy meetings showed last week officials in Europe agreed the very generous monetary policy support to the economy would need to be reassessed at some point in the future and reiterated once again that the uptick in inflation was seen as temporary, while the US Federal Reserve signaled it was ready to raise interest rates if inflation continued to run high.
Historically, the Euro Dollar Exchange Rate - EUR/USD reached an all time high of 1.87 in July of 1973.The euro was only introduced as a currency on the first of January of 1999. However, synthetic historical prices going back much further can be modeled if we consider a weighted average of the previous currencies. Euro Dollar Exchange Rate - EUR/USD - data, forecasts, historical chart - was last updated on December of 2021.
The Euro Dollar Exchange Rate - EUR/USD is expected to trade at 1.13 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 1.11 in 12 months time.